Tennessee short-term rental laws (2026)
Tennessee's Short-Term Rental Unit Act does something few state laws do: instead of telling cities what they may regulate, it tells them whom they may not reach. If your property was already being used as a short-term rental when an ordinance was enacted, that ordinance does not apply to it, and the rules in force when you started are the rules that govern. That legacy status is durable but not permanent. It ends if the property is sold, transferred, sits unused as a rental for thirty continuous months, or breaks a generally applicable local law three separate times.[1]
Every rule below links to the official source it comes from, verified September 20, 2026.
Is Airbnb legal in Tennessee?
Legal, and older listings are protected
A Tennessee city may require a permit, but a property already rented before the ordinance keeps the older rules until it is sold or breaks the law three times.
3 official sources · verified September 20, 2026
Photo: Matthew Jungling on Unsplash
- PermitRequired · City permit where one exists
- Primary residenceVaries
- Number on listingNot required
- Night capNone; under 30 nights is the definition
Every Tennessee rule, sorted by what it asks
Filter by topic. Each line carries the number of its official source, listed at the bottom of the page.
You must
- Hold your city's permit where it runs a permitting or application process, since the use can be suspended for any period without one.[1]
- Keep proof of when the property first went on the market as a rental: legacy status turns on that date and on the permit or the tax filings that went with it.[1]
- Collect the city room occupancy tax where one has been levied by ordinance.[3]
You must not
Cities in this state
Short-term rental rules in 6 Tennessee cities
Ranked by the share of housing the Census counts as seasonal. Each city page carries its own rules, its tax stack and its census figures.
| City | County | City rule | Primary residence | Seasonal homes per 1,000 | Seasonal homes |
|---|---|---|---|---|---|
| Gatlinburg | Sevier | Registration required | Not published | 340 | 1,641 |
| Sevierville | Sevier | Registration required | Not published | 32 | 310 |
| Chattanooga | Hamilton | Allowed by zone | Varies | 9 | 805 |
| Knoxville | Knox | Registration required | Varies | 9 | 851 |
| Johnson City | Washington, Sullivan and Carter | No city ordinance | Not required | 8 | 271 |
| Memphis | Shelby | Capped | Not published | 4 | 1,064 |
Four jurisdictions, same questions
The Tennessee column comes from the official sources on this page. The other columns show the headline rule from each WonderGuest page. Open a page for the full detail.
| Question | Tennessee | Nashville | New Orleans | Hawaii |
|---|---|---|---|---|
| Permit | RequiredCity permit where one exists | Required$313 permit fee, 12 months | Required$500 owner, $150 operator a year | RequiredState GET and TAT licenses |
| Primary residence | Varies | Varies | Varies | Varies |
| Night cap | None; under 30 nights is the definition | None published | None published | No state cap, county rules vary |
| Number on listing | Not required | Required | Required | Required |
| Where allowed | City zoning decides, legacy status aside | Set by zoning and owner occupancy | Listed districts, one per block | Set by each county |
| Occupancy tax | City room occupancy tax, 4% ceiling | Airbnb collects occupancy taxes | 6.75% STR tax, Airbnb collects | 11% state TAT plus county TAT |
| Fine without permit | Use suspended while unpermitted | Not published | At least $1,000 per offense per day | $500 fine, $2,000 if cash-based |
| Nashville rules | New Orleans rules | Hawaii rules |
Coming up
What's changing
No change with an effective date appears in the official sources on this page as of September 20, 2026.
FAQ
Tennessee short-term rental questions
What is a short-term rental unit in Tennessee law?
How do I lose legacy status?
Does a new city ordinance apply to a house I already rent out?
How high can a Tennessee city set its occupancy tax?
Sources
- Public Chapter 972, Acts of 2018, the Short-Term Rental Unit Act, Tennessee Secretary of State, read on September 20, 2026
- Summary of the Short-Term Rental Unit Act, Municipal Technical Advisory Service, University of Tennessee, read on September 20, 2026
- Room Occupancy Tax, municipal finance reference, Municipal Technical Advisory Service, University of Tennessee, read on September 20, 2026
This page is not legal advice. It summarizes the official sources listed on this page as they read on September 20, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.
Before you list
Free tools for new hosts
Short-term rental agreement generator
Parties, dates, rent, deposit checked against your state's cap, and the house rules clauses you enforce. A signed-ready PDF for direct and Vrbo bookings.
Airbnb house rules
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Rental arbitrage calculator
Rent, deposit, furnishing, nightly rate and occupancy. You get monthly cash flow, the occupancy you break even at, and how long the setup takes to pay back.
Check-in instructions
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